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Mankind Is Our Business

 

By Professor Gnanaharan

 

May 2006

 

Declared Charles Dickens with an outburst of humanism. Milton Freidman, the Nobel Prize winning economist advised businessmen few decades ago that "the business of business is business". They seem to be at loggerheads. But fortunately some kind of convergence is happening already.


The new recruitment strategy announced by Scope International Pvt Ltd. the BPO company from the Standard Chartered Bank Group goes to prove this point. Sreeram Iyer, the company's chief executive officer recently outlined a three-dimensional recruitment strategy to widen the scope of its workforce.


First and foremost, Scope is foraying into Tier II cities in Tamilnadu. It has already hired 50 people in Coimbatore and has plans to extend its recruitment drive to places like Trichy, Pondicherry, Cuddalore, and Salem.

 

The second dimension of the strategy relates to hiring students who have just passed plus two to work on simple processing. The company proposes to part-finance their continuing education through correspondence.


Recruiting housewives in the 30 plus category represents the third plank of Scope's recruitment strategy. It aims at recruiting those women who stopped working due to family circumstances and other talented ones who do not wish to take up a full-time job.


Mr.R.Seshasayee, President of Confederation of Indian Industry(CII) and other captains of the industry are pitching for "affirmative action" as a credible alternative to job reservation. It promotes an 'inclusive development' by expanding the horizons of opportunity for an increasing number of people. The recruitment strategy outlined by Sreeram Iyer could well be taken as a blueprint for sustainable development of the BPO Industry as a whole.


A wholesale adoption of this kind of a three-pronged recruitment strategy has the potential to ensure a greater access to the existing talent pool and develop a bigger pool of talent reservoir in the country. From the company point of view, it helps maintain its competitive advantage in the global market.


Competitive advantage of the BPO industry would best be attained, retained, and even enhanced only by continuously going up in the industry's value chain on the one hand and gradually disbursing the BPO activities to the second and third tier cities. The latter plays a decisive role both in expanding the size of the talent market and safeguarding the labour cost arbitrage vis-v vis other competing nations.


This kind of a recruitment strategy can be considered as a Corporate Social Responsibility(CSR) in its best form. Because it fulfills business objective and social objective-all at the same time. Therefore,what Charles Dickens famously observed need not live in the world of Best Literature. It can transcend into the world of business as a best business practice promoting Sustainable Development(SD).

A CSR initiative should go beyond boosting this year's or next year's profit bottomline. But they can aim at boosting the same in the long run by focusing on the other two Ps viz. People and Planet. The People part of the Triple Bottomline can boost the future profitability by bringing in "the out of scope" customers or any other segment of stakeholders. In this case, it helps bring in out of scope employees into the company's fold.


Some time ago D. Sampath Kumar, Associate Editor in The Hindu Business Line gave an expert lecture to our management students. While talking about the role of news papers in understanding the business environment, Mr. Sampath Kumar gave an interesting analogy. News papers present trees. It is upto the reader to see them in the context of a forest.


What is happening in the BPO sector have to be seen in the larger context of an increasing attrition rates, demand for talent chasing limited supply in spite of widespread educated unemployment, the current controversy and conflict over the issue of reservation, the future of Indian BPO industry etc., The recruitment strategy announced by Sreeram Iyer of Scope needs to be viewed in backdrop of above mentioned developments.